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EUR/USD Resumes Decline, Upsides Could Be Limited

Key Highlights

  • EUR/USD extended decline below the 1.0950 support.
  • It broke a key bullish trend line with support near 1.0980 on the 4-hours chart.
  • GBP/USD dived and tested the 1.2980 support zone.
  • Gold price could attempt a move above the $1,950 resistance.


EUR/USD Technical Analysis

The Euro started a fresh decline from well above the 1.1150 level against the US Dollar. EUR/USD declined below the 1.1050 support to move into a bearish zone.

Looking at the 4-hours chart, the pair even traded below the 1.1000 level, the 200 simple moving average (green, 4-hours), and the 100 simple moving average (red, 4-hours).

There was a break below a key bullish trend line with support near 1.0980 on the same chart. The pair traded as low as 1.0835 and is currently consolidating losses. An immediate resistance on the upside is near the 1.0915 level.

The first major resistance is near the 1.0950 level (the previous support zone). The next major resistance is near the 1.1000 level. Any more gains might send the pair towards the 1.1050 level in the coming sessions.

On the downside, an immediate support is near the 1.0840 level. The next major support is near the 1.0820 level. A downside break below the 1.0820 support level might send the pair towards the 1.0750 level.

Looking at GBP/USD, the declined sharply and even spiked below the 1.3000 level. However, the bulls took a stand and protected the 1.2980 level.

Economic Releases

  • UK Industrial Production for Feb 2022 (MoM) - Forecast +0.4%, versus +0.7% previous.
  • UK Manufacturing Production for Feb 2022 (MoM) – Forecast +0.4%, versus +0.8% previous.